Views on Hindustan Media Ventures Ltd 1QFY2016 Results: Angel Broking

Views of Mr. Amarjeet S Maurya, Sr Equity Research Analyst - Mid Caps on Hindustan Media Ventures Ltd 1QFY2016 Results:

Raw Material cost savings boost overall profitability

For 1QFY2016, Hindustan Media Ventures Ltd (HMVL) reported earnings above our estimates. Its top-line grew by 6.5% yoy to ~INR 224cr, mainly due to decent growth in both the segments, i.e. advertising & circulation. For the quarter, the company reported an operating profit of ~INR 55cr, up ~27% yoy. Further, the company's operating margin expanded by 394bp yoy to 24.4% for the quarter, primarily on account of lower raw material prices which were down 365bp as a percentage of sales, mainly due to decrease in newsprint costs. Also, employee costs were down 127bp as a percentage of sales. The net profit grew by ~23% yoy to ~INR 42cr due to improvement in performance at the operating level and higher other income. Currently, we have a BUY rating on the stock.

Shares of HINDUSTAN MEDIA VENTURES LTD. was last trading in BSE at Rs.249.7 as compared to the previous close of Rs. 252.7. The total number of shares traded during the day was 13349 in over 566 trades.

The stock hit an intraday high of Rs. 260 and intraday low of 247.1. The net turnover during the day was Rs. 3377303.

Source : Equity Bulls

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